UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: MadAmos One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76111  
Subject: Re: aggressive or conservative? Date: 8/30/2000 12:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Great question!
Let me share my experience.
I am 25 and have been working for 2.5 years.
I started contributing to my 401(k) immediately.
However I was a beginner at this, not and enlightened Fool.
So I put my money in a mix of funds, some holding bonds , some holding stocks, and some holding both.
I basically put money in every fund available to me.
I was getting good returns out of the stock funds, but poor returns out of the others.
After reading the Fool and learning more about investments, I changed the funds I held.
I only have 4 funds in my 401(k) now. All of them are stock funds. One is an S&P 500 Index fund (allocated at 45%). The other 3 funds all have low management fees and good returns.
I am not too aggressive with the funds that I chose.
This mix seems to be doing very well for me considering the general downturn in the market. While the returns are not great, I am not losing money either.

I do not plan on holding individual stocks in my 401(k). The reason is simple. The money that I put into my 401(k) is money I can't touch for 40+ years. If I were to invest in stocks, I would be a fool to not re-evaluate these investments every quarter. With mutual funds, I look for funds that have a reasonable investing strategy.
With mutual funds I feel I only need to re-evaluate my holdings if the management or investing strategy of the fund changes. Much less maintenance involved.

So far this has all worked out well for me. I plan on sticking to the above philosophy and contributing as much as I can to my 401(k). It is amazing how fast the money builds up!

Ultimately how aggressive you are depends on you own personal preference. Good Luck!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

Berkshire Beyond Buffett Event
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement